Finding Text
Significant Deficiency
Finding 2023-006
Statement of Condition:
Upon review of invoices pertaining to Capital Grant funds it was noted the Commission did not verify the contractors procured for the building projects were in compliance with the Davis-Bacon Act.
Criteria:
N. SPECIAL TESTS AND PROVISIONS, 7. WAGE RATE REQUIREMENTS: 29 CFR part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction requires the Capital Grant fund recipients to verify that the contractor or subcontractor submitted the required certified payrolls.
Perspective Information:
The Commission did not have effective internal controls pertaining wage rate requirements related to Capital Fund grants.
Questioned Costs:
None.
Effect:
The Commission is not in compliance with the special tests and provisions, wage rate requirements sections above.
Cause:
Lack of internal controls over capital grant requirements.
Recommendation:
The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to wage rate requirements.
Management’s Response:
New Management has taken over as of March 2023 and will review and implement stronger policies and procedures pertaining to wage rate requirements.